Amphenol (APH) to Report Q3 Earnings: What's in the Cards?
Amphenol APH is set to report third-quarter 2020 results on Oct 21.
Amphenol expects third-quarter earnings between 84 and 86 cents per share. Net sales are expected between $1.960 and $2 billion.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $2.01 billion, implying a decline of 4.4% from the figure reported in the year-ago quarter.
Moreover, the consensus mark for earnings has stayed at 86 cents per share over the past 30 days, implying 9.5% decline from the figure reported in the year-ago quarter.
Notably, Amphenol’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, missing in the remaining one, the average surprise being 9.2%.
Let’s see how things have shaped up for the upcoming announcement.
Factors to Consider
Amphenol’s diversified business model lowers the volatility of individual-end markets and geographies. Moreover, acquisitions like Onanon, Cablescan, XGiga and EXA Thermometrics are expected to have aided third-quarter results.
Amphenol’s third-quarter 2020 top line is expected to have benefited from higher sales to an improved automotive end-market. Per The Wall Street Journal, the U.S. automotive industry showed signs of recovery from coronavirus-led disruptions, driven by strong demand for trucks and sport-utility vehicles. Notably, the automotive market accounted for 11% of the company’s second-quarter net sales.
Moreover, IT and data communications sales are expected to have benefited from a surge in orders for cloud computing and data centers, as well as gaming systems. Industrial segment is also expected to have benefited from strong demand for coronavirus-related medical equipment. This is expected to have negated weakness in oil & gas, heavy equipment, and rail-mass transit.
Mobile devices’ sales are also expected to have increased in the to-be-reported quarter.
However, weak military, commercial aerospace and mobile networks sales are expected to have hurt Amphenol’s third-quarter results.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Amphenol has an Earnings ESP of +0.83% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are a few other companies you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat in their upcoming releases:
Avnet AVT has an Earnings ESP of +39.13% and a Zacks Rank #1.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Limelight Networks LLNW has an Earnings ESP of +61.54% and a Zacks Rank #2.
MSCI MSCI has an Earnings ESP of +0.83% and a Zacks Rank #2.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.